Inflation and supply chain problems continue to impact Americans. Auto insurance rates have risen as a result, along with the prices of new and used cars, medical care and even car maintenance.
Think twice about minimum coverageAlmost every state requires drivers to carry a minimum amount of liability insurance, which pays for injuries and property damage you cause in an accident. While minimum coverage is typically the cheapest policy you can get, your state’s minimum-required limits likely aren’t high enough to cover the full cost of injuries or property damage caused by an accident.
Cover your net worthYou’ll be held financially responsible for costs from an accident you cause, whether or not you have sufficient insurance coverage. If your liability limits aren’t high enough, then you’ll have to pay out of pocket. About 1 in every 7 drivers is uninsured, according to a 2022 report from the Insurance Research Council. You can protect yourself from these drivers by including uninsured motorist and underinsured motorist coverage on your policy. These coverage types pay for your own medical bills and damage to your car if you’re hit by a driver without car insurance or with very minimal liability limits that don’t cover all of your expenses.